Hong Kong Banks Fall Short on Quantum Readiness, Targeting 10 by 2030

Hong Kong's banking sector has been assessed for its readiness to face the quantum threat. The Hong Kong Monetary Authority (HKMA) has launched a quantum readiness assessment system and published a white paper with the first Quantum Preparedness Index.

The sector average came in at 2.3 out of 10, indicating that most banks are not adequately prepared. Only one-third of surveyed banks have actively studied or piloted quantum initiatives, while half have discussed the topic at the board level.

HKMA has set a target of reaching 10 by 2030 and will develop post-quantum cryptography toolkits with the Hong Kong University of Science and Technology's Business School. The regulator warned that quantum computers capable of running Shor's algorithm could threaten widely used cryptographic systems, including RSA and elliptic curve cryptography.

The expansion of tokenization in Hong Kong is tied to the need for quantum preparation. Banks in the city hold over HK$14 billion in digital assets under custody, up 180% year-over-year.